12 GL 12-11 1 ts 1 GL1201 (Algo) - Based on Exercise 12-11 LO P2, P3, A1 Use the following financial statements and additional information. QUALITY FIRST INCORPORATED Comparative Balance Sheets June 30, 2019 and 2018- eBook Ask Assets Cash Print ferences Accounts receivable, net 2019 $ 120,200 76,000 2018 Saved $ 72,800 59,000 Inventory Prepaid expenses Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities. Notes payable (long term) Total liabilities Equity Common stock, $5 par value Retained earnings Total liabilities and equity 68,000 4,600 268,800 137,000 (33,000) $ 372,800 $ 31,000 94,000 5,800 231,600 127,000 (11,000) $ 347,600 $ 38,000 19,000 4,600 8,000 4,100 43,100 61,600 40,000 80,000 83,100 141,600 240,000 170,000 49,700 36,000 $ 372,800 $ 347,600 QUALITY FIRST INCORPORATED Income Statement For Year Ended June 30, 2019 ces Sales Cost of goods sold QUALITY FIRST INCORPORATED Income Statement For Year Ended June 30, 2019 Gross profit Operating expenses Depreciation expense Other expenses Total operating expenses Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income $ 63,000 71,000 $ 727,000 445,000 282,000 $ 134,000 148,000 2,400 150,400 46,040 $ 104,360 Additional Information a. A $40,000 note payable is retired at its $40,000 carrying (book) value in exchange for cash. b. The only changes affecting retained earnings are net income and cash dividends paid. c. New equipment is acquired for $62,000 cash. d. Received cash for the sale of equipment that had cost $52,000, yielding a $2,400 gain. e. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement. f. All purchases and sales of inventory are on credit. Requirement General Journal General Ledger Trial Balance Direct Method Indirect Method Using the income statement, the comparative balance sheet, and the additional information given abc the summarized activity of the current fiscal year. Upon completion, the trial balance tab shoul